Rating Release
Agusto & Co. affirms the ‘Bbb’ rating assigned to Providus Bank Limited, with a stable outlook
The rating expires on 30 June 2025.
Agusto & Co. affirms the ‘Bbb’ rating assigned to Providus Bank Limited (“Providus Bank” or “the Bank”). The rating is upheld by the Bank’s improved profitability, good liquidity profile, experienced management team and growing deposit base. Offsetting these positive factors are the obligor and sectoral concentrations in the loan book, rising deterioration in the loan book, high funding cost relative to other peer group banks and prevailing macroeconomic vagaries. A “2” ESG score has also been attached to the rating, reflecting our view that environmental, social and governance issues have minimal impact on the Bank’s credit risk.
